CHPC Committee Report

In March 2009, the Standing Committee on Canadian Heritage held a series of meetings on the Strategic Review of Arts and Culture Program Expenditures. The Committee wishes to thank those who accepted our invitation and helped us to study the matter.

This report provides a summary of the evidence heard with respect to the repercussions of the Strategic Review. The Committee will then present its position as well.

Recap of Events

In the February 26, 2008 Budget, the Government said that a number of departments should undertake strategic reviews of their programs and spending. As a result, departments were “... streamlining operations, realigning their activities and transforming their organizations in order to deliver better programs and better results to Canadians.”[1] With regard to the Department of Canadian Heritage, the Budget said:

Through a comprehensive review of its programs and spending, Canadian Heritage has identified certain programs that have now achieved their original goals. The Government is redirecting all savings toward other Canadian Heritage programs, including investments to strengthen that department’s Official Languages Action Plan, and support in this budget toward the 2010 Olympic and Paralympic Torch Relays and toward the Government’s Road to Excellence for summer Olympic athletes.[2]

Specifically, the Budget identified the following areas in which savings would be made and into which the savings would be reallocated:

Source : Department of Finance, “Budget 2008: The Budget Plan,” February 28, 2008. http://www.budget.gc.ca/2008/plan/ann3-eng.asp.

Between February and August 2008, the Department of Canadian Heritage announced it would end a number of arts and culture programs or reduce their budgets. In other instances, programs reached the end of their term and were not renewed. The affected programs are briefly described below. One of these programs is administered by the Department of Foreign Affairs and International Trade (DFAIT).[3]

A. Programs Discontinued Since April 1, 2008

1. Culture.ca

Culture.ca was a website primarily funded by Canadian Culture Online, which is part of the Department of Canadian Heritage’s strategy to encourage a uniquely Canadian presence on the Internet. According to the list provided by the Department to the Canadian Press, its annual budget was $3.8 million.[4] A note on the Culture.ca website said:

We wish to inform you that Culture.ca has been discontinued since April 1st, 2008. This is a result of a Strategic Review of Government of Canada programs and activities announced in the 2008 Budget. The original program objectives of Culture.ca have been fulfilled, and the decision to discontinue the Web portal reflects the changing conditions in the digital and online environment. Please note, no new content will be developed. The site will be maintained for the next several months until it is taken offline and archived. During this time, every effort will be made to make content and digital collections related to the Department of Canadian Heritage’s mandate available to Canadians as the Department integrates its online services.[5]

2. Canadian Cultural Observatory

The Canadian Cultural Observatory was an information service about cultural development issues in Canada. It did this by informing the cultural policy and research community. According to the list provided by the Department to the Canadian Press, its budget was $560,000.[6] A note on the Canadian Cultural Observatory website said :

We wish to inform you that Culturescope.ca has been discontinued since April 1st, 2008. This is a result of a Strategic Review of Government of Canada programs and activities announced in the 2008 Budget. The original program objectives of the Cultural Observatory have been fulfilled and the decision to discontinue the Culturescope.ca website reflects the changing conditions in the public digital and online environment...

Please note, no new content will be developed. The site will be maintained for the next several months until it is taken offline and archived. In particular, the Culturescope.ca Groups will continue for the next six months with basic support. During this time, every effort will be made to make content and archives related to the Department of Canadian Heritage’s mandate available to Canadians as the Department integrates its online services.[7]

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B. Programs Not Being Extended Beyond Fiscal Year 2008-2009

1. Canadian Memory Fund

The Canadian Memory Fund made key Canadian cultural collections held by federal institutions available free of charge through the Internet. The Fund placed a particular emphasis on projects that implemented accessibility measures for Canadians with disabilities and provided for the digitization and presentation online of original French-language content, and content that reflects Canada’s cultural diversity.[8] According to the list provided by the Department to the Canadian Press, its budget was $11.57 million.[9] A note on the Department of Canadian Heritage website says:

Please note that the Canadian Memory Fund will not be extended beyond fiscal year 2008-2009. This program has clearly achieved its original objective to encourage federal agencies to digitize their collections and make them available online to Canadians. Developing Web sites and online documents containing digitized works is now common practice within these agencies.[10]

2. Research and Development Component of Canadian Culture Online

The Canadian Culture Online Branch of the Department of Canadian Heritage developed policies and programs related to the Internet and digital technology to make Canadian cultural content accessible. According to the list provided by the Department to the Canadian Press, its budget was $5.64 million.[11] A note on the Research and Development Component of Canadian Culture Online website says:

Please note that the New Media Research Networks Fund will not be extended beyond fiscal year 2008-2009. Also, the New Media Research and Development Initiative, a pilot program that ended in March 2008, will not be renewed. Through its investments of $27.3 million, the federal government has helped build a strong foundation for innovation in the interactive media sector. These investments, combined with the industry’s success, make it possible for the industry to play a key role in interactive media research and development.[12]

3. National Training Program for the Film and Video Sector

The National Training Program for the Film and Video Sector (NTPFVS), administered by Telefilm Canada, fostered the professional development of emerging Canadian creators and skills renewal for professional Canadian creators.[13] The Canadian Independent Film and Video Fund (CIFVF) worked with inexperienced producers for the development and production of English and French language films or videos and interactive digital new media programs in a variety of subject areas using the formats of documentary, docu-drama, drama and animation to the list provided by the Department to the Canadian Press; its budget was $2.5 million. [14] A note on the Canadian Heritage website says: “The National Training Program for the Film and Video Sector will not be extended beyond April 1, 2009.” [15]

4. Canadian Independent Film and Video Fund

The CIFVF was a non-profit funding body that supported non-theatrical film, videos and new media projects created by Canadian independent producers. The CIFVF worked with inexperienced producers for the development and production of English and French language films or videos and interactive digital new media programs in a variety of subject areas using the formats of documentary, docu-drama, drama and animation. The CIFVF’s annual budget was $1.5 million. The projects that received CIFVF funding included schools, universities, colleges, libraries, health care institutions and cultural and multicultural associations. [16]

A note on the Canadian Heritage website says: “Please note that Canadian Heritage’s contribution to the CIFVF will not be extended beyond April 1, 2009.” [17]

5. Audio-Visual Preservation Trust of Canada

According to the list provided by the Department to the Canadian Press, two programs administered by the Audio-Visual Preservation Trust of Canada (AV Trust) are being phased out as of April 1, 2009. These are the Feature Film Preservation and Access Program ($150,000) and the Canadian Music Preservation and Access Program ($150,000). [18]

6. Trade Routes Program

Trade Routes was a trade development program that helped profit and not-for-profit organizations in the arts and cultural sector prepare to export and sell in international markets. The program offered access to market research, trade experts in Canada and abroad, and financial support.[19] According to the list provided by the Department to the Canadian Press, its budget was $7.1 million.[20] The program gave $2 million in direct contributions to arts organizations. These contributions enabled organizations to attend fairs and conventions and to be a part of foreign trade missions. The lion’s share of $5 million dollars was spent on service offerings from trade specialists based in Canada and abroad. A note on the Trade Routes website says that the Government of Canada will stop financing contributions under the Trade Routes program at the end of this fiscal year, March 31, 2010.

Trade Routes will continue to offer market entry support, in-market assistance and market research services to its clients until the end of the 2009-10 fiscal year—that is, until March 31, 2010. ...The portfolio organizations and delivery partners of the Department of Canadian Heritage, including the Canadian Conference of the Arts. Telefilm Canada and the Association for the Export of Canadian Books will continue to offer programs that have an international component. As well, the Department of Foreign Affairs and International Trade will continue to offer support for Canadian artists and cultural entrepreneurs through its Trade Commissioner Service across Canada and abroad, through its network of diplomatic missions, cultural attachés and trade commissioners.[21]

7. Canadian Arts and Heritage Sustainability Program

The role of the Canadian Arts and Heritage Sustainability Program was to strengthen organizational effectiveness and build capacity of arts and heritage organizations. The Stabilization component helped establish stabilization projects run by independent, non-profit organizations that supported arts and heritage organizations in their areas by offering technical expertise.[22] According to the list provided by the Department to the Canadian Press, two components are to be phased out and one component reduced. The budgets of these programs totalled $3.9 million. A note on the Stabilization Projects website says:

Please note that the Stabilization component will not be extended beyond fiscal year 2008-2009. This program has achieved its original objective to strengthen the organizational, administrative and financial health of arts and heritage organizations benefiting from the program, through support provided through third parties. Since stabilization projects are established as an agent of long-term change, usually seven to ten years, applications to this component will no longer be accepted.[23]

The Capacity Building Component of the Canadian Arts and Heritage Sustainability Program helped arts and heritage organizations strengthen their organizational, administrative, and financial circumstances.[24] A note on the Capacity Building website says:

The current funding cycle of the Canadian Arts and Heritage Sustainability Program will expire on March 31, 2010. The last deadline to apply to the Capacity Building Component for the current funding cycle is October 15, 2008 for projects starting in the spring of 2009. Projects submitted to the Department must be entirely completed by March 31, 2010.[25]

8. Arts Promotion Program (Department of Foreign Affairs and International Trade)

The Arts Promotion Program of the International Cultural Relations Division at Foreign Affairs and International Trade Canada (DFAIT) provided funding to Canadian artists and arts organizations. The Program transferred approximately $4.8 millions in grants and contributions each year.[26] Of this amount, 70% or $3.3 million went to the performing arts, in two parts. The first $3 million (or 90% of the performing arts envelope) supported international tours, and the rest was used to host foreign buyers at festivals or other major Canadian international events. A note on the website says: “Please note that the Cultural Sector Grant program mentioned below will be concluded as of March 31, 2009. Please refer to the webpage of your specific discipline for further details”.[27]

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C. Programs Not Being Extended Beyond Fiscal Year 2009-2010

1. Northern Distribution Program

The Northern Distribution programming element of the Aboriginal People’s Program provides $2.1 million annually to the Aboriginal Peoples Television Network (APTN) to lease, operate and maintain the satellite channel by which Aboriginal television productions are broadcast over the air in 96 northern and remote communities.[28] This part of the Program will be gradually wound down as of April 1, 2010.[29]

D. Programs Being Reduced

1. Supply Chain Initiative of the Book Publishing Industry Development Program

The Supply Chain Initiative of the Book Publishing Industry Development Program supports the Canadian book industry’s adoption of innovative technologies.[30] According to the list provided by the Department to the Canadian Press, its budget will be reduced by $1 million as of April 1, 2008.[31] A note on the website says:

Support for publishers’ activities in developing high-quality bibliographic data ended in 2007-2008 as planned. The recent Strategic Review of all program spending of the Department concluded that since the objectives for this funding have been met, $1M will be reallocated starting in 2008-2009. This represents a small fraction of the total funding allocated to the book publishing industry by Canadian Heritage, and the remaining budget will be adequate to meet current program objectives.[32]

E. Canada Magazine Fund

The Canada Magazine Fund (CMF) contributes to the production of high-quality magazines in order to showcase the work of Canadian creators. The CMF helps build industry capacity through support for business development of small magazine publishers, industry development projects and support for arts and literary magazines.[33] On February 17, 2009, the Department of Canadian Heritage announced that the Canada Magazine Fund and the Publications Assistance Program would be replaced by a single program called the Canada Periodical Fund. However, the existing programs will continue to operate until the new program is launched in 2010-1011.[34]